Correlation Between Hain Celestial and Westrock Coffee

Can any of the company-specific risk be diversified away by investing in both Hain Celestial and Westrock Coffee at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hain Celestial and Westrock Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Hain Celestial and Westrock Coffee, you can compare the effects of market volatilities on Hain Celestial and Westrock Coffee and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hain Celestial with a short position of Westrock Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hain Celestial and Westrock Coffee.

Diversification Opportunities for Hain Celestial and Westrock Coffee

0.02

Correlation Coefficient

Hain Celestial  Westrock Coffee

Significant diversification

The 3 months correlation between Hain and Westrock is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Hain Celestial and Westrock Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westrock Coffee and Hain Celestial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Hain Celestial are associated (or correlated) with Westrock Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westrock Coffee has no effect on the direction of Hain Celestial i.e., Hain Celestial and Westrock Coffee go up and down completely randomly.

Pair Corralation between Hain Celestial and Westrock Coffee

Given the investment horizon of 90 days Hain Celestial is expected to generate 1.18 times less return on investment than Westrock Coffee. In addition to that, Hain Celestial is 1.39 times more volatile than Westrock Coffee. It trades about 0.04 of its total potential returns per unit of risk. Westrock Coffee is currently generating about 0.06 per unit of volatility. If you would invest  610.00  in Westrock Coffee on May 7, 2025 and sell it today you would earn a total of  64.00  from holding Westrock Coffee or generate 10.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Hain Celestial  vs.  Westrock Coffee

Hain Celestial

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in The Hain Celestial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Hain Celestial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Westrock Coffee

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Westrock Coffee are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Westrock Coffee unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hain Celestial and Westrock Coffee

The main advantage of trading using opposite Hain Celestial and Westrock Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hain Celestial position performs unexpectedly, Westrock Coffee can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Westrock Coffee will offset losses from the drop in Westrock Coffee's long position.

The idea behind The Hain Celestial and Westrock Coffee pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.